Customs EDI alert relief granted conditionally pending revision over unresolved interest liability after recovery of principal dues

Where the drawback amount and penalty had already been recovered, but the alleged interest liability had not attained finality because revision proceedings were pending, the High Court regulated the continuation of the Customs EDI alert by imposing a protective condition rather than deciding the recovery dispute on merits. It directed removal of the alert on the petitioner furnishing a personal bond for the stated amount, thereby granting conditional relief while leaving the underlying liability issue open for determination in the pending revision.

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Issues: Whether the alert in the Customs EDI System could be continued despite recovery of the drawback amount and penalty, when the revisional challenge to the adjudication order was still pending and the claimed interest liability had not attained finality.

Analysis: The petitioner's drawback liability and penalty had already been recovered, while the Revenue justified continuation of the alert only on the ground that interest remained unpaid. The adjudication and appellate orders were under challenge in revision, and the liability had not reached finality. In that situation, the Court considered it appropriate to balance the interests of both sides by granting relief on a protective condition, instead of deciding the merits of the recovery dispute.

Conclusion: The alert was directed to be removed upon the petitioner furnishing a personal bond for the stated amount, and the writ petition was disposed of on that basis.

Final Conclusion: The petitioner obtained conditional relief against the EDI alert, while the substantive liability dispute was left open for decision in the pending revision proceedings.

Ratio Decidendi: Where the underlying fiscal liability has not attained finality and the Revenue has already recovered the principal dues, continuation of an export-related alert may be regulated by a protective condition to safeguard both parties' interests.

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